By Ivana Saula
Saving on your own or through a group pension plan? It’s an important question and a tough decision, but a recent survey makes it clear, IAM pension plans are the best way to save for retirement.
In a survey examining 50 union pension plans in Canada, published in Pension and Benefits Monitor, our pension plans placed in the top 10. Our plans came in 7th overall, due to their stability and security, which ensures that our members can retire in dignity and maintain a comfortable lifestyle.
The fees and costs related to maintaining our plans are less than regular RRSPs, .67% versus 2.5%. Fees and costs are important as they impact your investment. Consider that annual fees of 2.9% result in 45% of your investment going towards paying fees to your financial planner, and the remaining 55% of your investment is paid as pension. The rate of return is another factor that sets our plans from the rest, because the rate of return is greater and more consistent; it has been 6.6% over a decade and more importantly, payouts to retirees are not dependent on fluctuating interest rates.
But don’t take it from us, read what our members have to say;
Multi-colour Offest Press Operator, Magellan Aerospace:
“The IAM Labour-Management Pension Plan will allow me to take early retirement. My financial planner has said our IAM Plan is one of the very best plans out there today. Now I can retire with dignity knowing that the money will be there each month for me. I don’t have to be relying only on the Canada Pension Plan.” – Mike Beard
Refund Services, Air Canada:
“Having the Multi-Employer Pension Plan is such a huge benefit. Most if us have to remember to contribute to our own RRSP to build retirement savings, and we have to figure out where to invest. With the MEPP, I know I’ll receive a target benefit, and I don’t have to worry about managing my own investments. It’s comforting to know I’ll have something for myself when I retire.” – Myranda Bachewich.